COSTS TO BUDGET FOR WHEN
BUYING A HOME
Sam Najafi
Costs to Budget for When Buying a Home Buying a home is not cheap, and on top of a mortgage, there are other costs that need to be budgeted for.
Arrangement and Valuation Fees Most mortgages require an arrangement fee; this is the fee charged by the lender for setting up the loan. Arrangement fees can be as much as £2,000, but they are typically around £1,000. Some mortgage lenders may also charge buyers a separate fee to check that the property is worth what they are planning to pay for it.
Mortgage Brokers Mortgage brokers can help first time buyers to get the best deal possible. Some brokers charge the buyer a fee, whilst others take commission from the mortgage lender. Brokers that charge the buyer typically charge between £300 and £2,000.
Conveyancing Fees Buyers will normally need a solicitor or conveyancer to complete the purchase process. This typically costs between £500 and £1,500.
Stamp Duty A temporary stamp duty holiday means that until the 30th June 2021, no buyer pays stamp duty on properties up to £500,000. If the property is more expensive than this limit, buyers will pay 5% on the portion between £500,001 and £925,000.
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Buyers will normally need a solicitor or conveyancer to complete the purchase process. This typically costs between £500 and £1,500.
You can find out more about buying a home and the housing market by visiting the blog of Sam Najafi, property writer.